IDA creates its lowest jobs total in 11 years

JOB creation in IDA Ireland-backed firms fell by more than 2,600 last year from 11,846 a year earlier to an 11-year-low of 9,216.

This was the lowest figure in 11 years and compares with 22,802 jobs generated in 2000 when the economy was at its peak.

However, the numbers of full-time jobs accounted for by IDA firms fell marginally by 147 to leave full-time employment virtually unchanged at 136,394.

The economy is well placed to win further leading job-creation projects in the current year said new chief executive Barry O’Leary.

In 2006, investment of €2.3 billion was pumped into foreign ventures including €310m on R&D. Last year generated disappointments with the decision by Amgen not to go ahead with its huge investment plans in east Cork.

Mr O’Leary said there was also great successes with expansions announced by key international groups like Wyeth, GlaxoSmithKline and Merrill Lynch.

Jobs were lost also during the year with leading computer maker Dell shedding 400 jobs. While foreign direct investment continued to play a significant role in the economy, figures on redundancies show 490 jobs per week were lost in 2006.

The Small Firms Association said the figures sounded alarm bells for Irish-backed firms. SFA director Patricia Callan said: “The loss of 25,459 jobs in 2007 shows that there is no room for complacency. Ireland cannot afford to keep losing on average 490 jobs a week”.

Although Ireland was no longer a low-cost economy, if we work smarter and better than our trading partners we can gain an advantage, she said.

“This requires a better use of technology, improving our innovation and productivity levels and keeping our costs under control,” she said. In its year-end review, the IDA said two thirds of 2007 projects were located outside Dublin, but it warned all interested parties would have to think regionally, not locally, for that level of distribution to continue into the future.